Cavvy Energy (CVVY) Corporate presentation summary

Corporate overview and strategy

• TSX-listed energy company focused on upstream and midstream assets in the Canadian foothills, with a strategic pivot from LNG to western Canadian operations and a rebrand in 2025.

• Production capability of 33,000 boe/d, with 85% natural gas and 15% NGLs and condensate, and significant sulphur output.

• Owns and operates three deep-cut sour gas plants with over 400 MMcf/d capacity and 4,600 mt/d sulphur recovery.

• Diversified revenue streams from hydrocarbons, sulphur, and third-party processing, providing resilience against commodity price volatility.

• Institutional ownership is high, with AIMCO holding 44% and insiders/institutions together owning ~70%.

Financial performance and guidance

• Q1 2026 production averaged 24,655 boe/d and 1,089 mt/d sulphur, with 100% facility runtime and strong third-party processing growth.

• Q1 2026 net operating income was $41.9MM, with $35.3MM realized from sulphur sales and $32.2MM funds flow from operations.

• Operating costs were $47.8MM ($21.55/boe), and net debt reduced to $156.6MM, reflecting a disciplined debt reduction strategy.

• 2026 guidance targets 22,000–24,500 boe/d production, 1,000–1,150 mt/d sulphur, $125–$140MM NOI, $35–$40MM capex, and year-end debt of $110–$125MM.

• Majority of 2026 free cash flow will be directed to further debt reduction.

Asset base and growth opportunities

• Holds 396,000 net undeveloped acres and 196 MMboe proved reserves, with a 5.9% base decline rate and a 25.8-year reserve life index.

• Over 300 high-impact drilling locations identified, supporting long-term reserves and value growth.

• Core areas include Waterton, Caroline, Jumping Pound, and Northern Alberta, each with significant development and exploration upside.

• Third-party processing is a growing revenue driver, enhancing plant efficiency and reducing carbon intensity.